Financial Statements

Best Buy net income for the 2015 financial year is $ 897 million. This is a decline in net income as compared to the previous 2014 financial year which where net income stood at $ 1.25 Billion. This is indicated in the difference in quarterly net income which was $194 million in 2016 fourth quarter while the 2015 fourth quarter net income was $ 198 million (Best Buy, 2016).  The changes in net income are of great concern to investors, since it assists them in determining how the company is fairing and whether they should continue their interest in such an investment. These changes influence the assessment of the company by investors, and a decline in profit would make some to invest if the trend of the changes is favorable. 

The company's end balance in shareholders' equity is $ 4.3 Billion for the financial year ended in September 2016. The labor unions are interested in the shareholder's equity due to their concern for their members (Best Buy, 2016). They shareholders equity play a big role in the collective bargaining agreement which allows the both employers and employees arrive at an agreement that will see the reduction of shareholders dividends and a rise in employee benefits and salaries. If the balance in shareholders' equity is considerably big, the labor unions may suggest that a firm is highly profitable and thus there are enough amounts of funds to cover the increase of member's benefits or even salaries. Best Buy's total value of assets for 2016 financial Year is $ 13.5 Billion, which represents carrying amount as per the date of the balance sheet for all assets that have been recognized (Best Buy, 2016). These assets present the probable future economic benefits under the control of the entity due to past events or transactions.  The value of total assets is relevant to potential creditors since they want to assess whether a firm has sufficient assets to offer financial stability. This is true when a firm interested on credits or loans for expansion or launching other business ventures want to take other debt obligations. Assets provide a firm with a means of keeping up with debt during uncertainty or volatility in business profit. The creditor is concerned that a company has valuable assets that can be converted to cash for down payment of debts when it becomes necessary.  In addition, a creditor will have vested interest in the total value of assets when a company applies for a secured loan, which has to be secured with a property. In this regard, the firm will have an interest in that it acquires the right to possess the asset if the loan obligations are not met.

For the Best Buy cash flow statements, the changes in both operating assets and liabilities were $ 1.11 B while the cash flow from the operating activities was $ 2.63Billion. The cash used up in various investment activities is $ 598M, and cash used in financing activities is $727 million (Best Buy, 2016). The cash flow from operating activities includes all the net cash used in company's activity that is inclusive of discontinued operations. These involve the transactions, adjustments and any changes in value defined in terms of financial or investing activities.

The main users of financial statements comprise of both the internal and external users. The internal users comprise of those individuals with a direct bearing with the company and include the shareholders, managers, and the employees. The shareholders and managers use the financial statements in making business decisions while the employees use need the reports to make bargaining agreements.  The main external users of the financial statements include the institutional investors, financial institutions and the government for the purpose of taxation (Brigham & Daves, 2014).  Financial statements are very useful in management since they have used in the assessment the performance of a company and in making decision that will steer the business in the right direction. The financial statements are normally audited to present an accurate picture of a company over a curtained period. As a manager, I would evaluate the data represented in the financial statements and make operating decisions on how to create maximum value for the shareholders (Brigham & Daves, 2014).

References

Best Buy,(2016).Financial Releases. Retrieved from: http://investors.bestbuy.com/investor-relations/news-and-events/financial-releases/2016/default.aspx

Brigham, E.F., Daves, P., R., (2014).Intermediate Financial Management. Cengage Learning.347-348